Dell EMC and VMware will have tighter technology ties than ever before in 2019 as the two companies are set to accelerate integrations around solutions like NSX, vSAN and Workspace ONE.
Tom Sweet, executive vice president and CFO of Dell Technologies, said becoming a public company on Dec. 28 will enable Dell and VMware to build out more solution sets that are closely integrated.
"You look at the number of solution workstreams that we have going right now with VMware -- whether it's around hyper-converged infrastructure or Workspace ONE in our client space or around what we're doing with vSAN and vSAN Ready Nodes – so across the spectrum, you're going to see us accelerate a number of these integrated solutions. We're optimistic and excited about it," said Sweet, in an interview with CRN.
"VMware is a great platform in the market in terms of their position in virtualized infrastructure, but you also think about what they're doing with VMware's NSX and the network, we have a lot of activity going on in the networking space. It's pretty exciting times," Sweet said.
Sweet said Dell Technologies would simplify its capital structure after it becomes a public entity, which opens the door for tighter and faster integrations throughout its seven brands: Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware.
"From a channel perspective, it should open up additional velocity as we think about how do we more effectively go-to-market and position integrated solutions. Because the world of today many times is, 'I don’t want three-tier architecture. I want a more simplified, less complex solution.' Therefore, VMware is a pretty significant part of that solution strategy for us," said Sweet.
Round Rock, Texas-based Dell owns 81 percent of VMware through its 2016 acquisition of EMC for $67 billion. However, VMware remains an independent company under the Dell Technologies umbrella.
Dell is leveraging its VMware relationship to go public through a VMware tracking stock swap rather than going the traditional IPO route to the public market. Dell Technologies is set to officially start trading on the New York Stock Exchange on 28 December under the symbol DELL.
While VMware technology is installed in many Cisco, Hewlett Packard Enterprise and IBM environments, Dell Technologies founder and CEO Michael Dell said his company was bigger and growing faster than the competition.
"If you look at our data center business, we are the largest and we're bigger than Cisco. Bigger than IBM. Bigger than HPE," said Dell in an recent interview with CRN USA. "If you look at the growth in the first nine months through the end of October, our data center business grew plus-22 percent. So we’re the biggest and growing at 22 percent. Then you say, 'Well what did Cisco grow?' Cisco grew like 5 [percent] or 6 percent. HPE grew 4 percent, and IBM was negative. So we're larger and growing a lot faster."